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You should consider the rates aboveĬarefully in comparison with the best savings rates that may be available to you. Rates are above savings rates to compensate youįor the risk of rising rates and to provide you with a premium for agreeing to keep your money on deposit until maturity. Since the rate is fixed, you avoid the risk of falling savings rates. What are advantages and disadvantages of certificates of deposit compared to a savings account? Only in rare circumstances,Īnd with the payment of a penalty, can the money be withdrawn early, and then it is at the bank’s discretion. In return for a consumer’s commitment to keep the money deposited until a specified date (the maturity date). CDs, often also called time deposits, are a savings vehicle similar to a savings or money market account, but guaranteeing a fixed rate